Panasonic to sell 80% stake in housing solutions to YKK

Panasonic Holdings Corporation (PHD) has signed an agreement to transfer an 80% stake in its wholly-owned subsidiary, Panasonic Housing Solutions (PHS), to an intermediate holding company to be established by YKK Corporation. This transaction, expected to close by the end of March 2026, will make PHS an equity-method affiliate of PHD. PHD will retain a 20% ownership stake and jointly manage the business. The move aims to strengthen competitiveness and foster long-term growth in the construction materials and housing equipment sectors.

The combined business scale of PHS and YKK AP Inc., a YKK subsidiary, is projected to reach approximately JPY 1 trillion in revenue. PHD anticipates a gain of approximately JPY 60 bn in operating profit for the fiscal year ending March 31, 2026. The company also expects a roughly JPY 100 bn increase in net cash.

PHS will continue to operate under its current name and utilize the Panasonic brand and PHD's intellectual property for a specified period. This divestiture is part of PHD's broader strategy to refine its business portfolio and address structural challenges within the Panasonic Group.